Page 95 - RusRPTSept21

RUB3bn. The initial capital of the subsidiary, which will be fully provided by Tinkoff Bank, will amount to PHP1bn. The Philippines is a large and relatively underpenetrated market, with a young, often English-speaking and urbanised population of 108mn, GDP of around $360bn, or $8,400 per capita (PPP), roughly a third of Russia's levels.
Russia's second-largest bank state-controlled VTB posted a record net profit of RUB85.5bn for 2Q21 under IFRS ($1.2bn, jumping from 2Q20 RUB0.8bn and flat quarter on quarter) with 17% return on equity. As followed by bne IntelliNews, after a challenging beginning to 2020 VTB bounced back with solid profitability and record ROE and confirmed the dividends. BCS Global Markets on July 30 attributed the profitability to stronger lending, business activity as well as lower cost of risk, while seeing the report as positive and affirming a Hold rating on VTB's shares. "VTB’s net profit exceeded RUB85bn in 2Q21 vs. consensus estimates of c. RUB 75bn due to the bank’s stronger core revenue and lower-than-expected cost of risk," Sova Capital also commented. The bank's net interest income came in strong with RUB160bn (up by 21% year on year, +10% quarter on quarter), supported by stronger loan dynamics with +6.2% q/q in retail and +4.3% in corporate as well as by further funding optimisation. Fees and commissions were at RUB45.5bn in 2Q21, (+122% y/y; +18% q/q) on stronger business activity as well as growth in insurance and broker products. Both revenue and provisions were better than estimates, while operating costs were in line with expectations, Sova noted, while keeping VTB's shares on its list of top picks with a Buy recommendation. After the strong 1Q21 and 2Q21 results, VTB expectedly upgraded its 2021 net income guidance to RUB295bn from RUB250bn-270bn, yet full 2021 guidance is not yet published.
VTB posts strong monthly RAS results for July.
VTB published its RAS standalone results for July on August 9, where standalone monthly net profit for July was almost c. RUB25bn as in May (vs. RUB17.5bn in June).
The continued y/y growth in core revenue in July was coupled with moderate loss provision charges. Management also reconfirmed the company’s updated FY21 IFRS net profit guidance of RUB295bn.
During the previous month, monthly net profit was almost c. RUB25bn, while ROE was nearly 20%.
The y/y growth in monthly NII was in the mid-teens, although it slid 8% m/m due to the 33bps m/m drop in monthly NIM, on our calculations. This was likely due to higher ruble interest rates and was essentially pre-announced by management during the 2Q21 earnings call.
95 RUSSIA Country Report September 2021 www.intellinews.com